The Union Cabinet Committee of Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today approved the issues relating to the under-recovery on sale of diesel and its present status. Instructions have been issued today i.e. on 18th October 2014 to make the price of Diesel market determined with effect from midnight of 18th-19th October 2014. The prices of Diesel will be market determined at both Retail and Refinery Gate level for all consumers thereafter.
Based on an earlier decision of the Cabinet Committee on Political Affairs (CCPA) dated 17th January 2013, instructions were issued to the Public Sector Oil Marketing Companies (OMCs) allowing them to increase the retail selling price of Diesel in the range of 40 paisa to 50 paisa per litre per month (excluding VAT as applicable in different States/Union Territories) till further orders.
Diesel prices will henceforth be market determined. This will facilitate greater competition in the Auto Fuels Retail segment and enhanced efficiency in service delivery of the oil companies. This is expected to benefit consumers due to greater competition among oil companies and more choices. The competition is also expected to foster greater efficiency in oil companies benefitting the consumers.
|Applicable from Midnight of October,18, 2014 and October 19, 2014|
|August 31, 2014||58.97||63.81||67.26||62.92|
Diesel (Retail) Price Change w.e.f midnight of 18/19 Oct'14
On 18.10.14, the Government has decided to make the price of Diesel market determined at both Retail and Refinery Gate level for all consumers wef midnight of 18/19th Oct14. Henceforth, Oil Marketing Companies (OMCs) are free to determine selling prices of the product in the domestic market.
The International oil prices have been on a steady and steep decline in the last few weeks. The falling international prices of Diesel warrant a decrease in selling price of Diesel in the domestic market. Thus a downward revision in selling price of Diesel is being effected w.e.f midnight of 18/19th Oct'14.
With this price revision, RSP at Delhi of Diesel shall decrease by Rs 3.37/litre (including VAT), with corresponding decrease in other States.
The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in Diesel prices.
The existing and proposed selling prices and reduction thereof in prices being effected for the four metros is given below :
|RSP (RS.LITRE).||MUMBAI ||NEW DELHI||KOLKATA||CHENNAI|
|Reduction in Price|